Small businesses can enter the global market by selling directly to customers in export territories, marketing products through a local distributor, participating in a joint venture with a local business partner, or selling through a website. Each strategy provides your business with a different level of cost, risk and control.

Research

Before you decide which strategy to adopt, carry out preliminary market research. You can find information on global market opportunities and sources of help on websites such as USA Trade Online. Use the data on the website to identify territories that have a demand for your products. Check local business and safety regulations to see if you need to modify your product, product name or packaging to comply with local legislation or cultural requirements. The U.S. Commercial Service, the export-promotion arm of the Commerce Department, has Foreign Service officers stationed around the globe, and is a valuable source of both general and country-specific information.

Website

Selling your products through a website is a simple, low-cost way of entering the global market. Customers and prospects around the world can visit your website at any time to select products and place orders. To improve your chances of success in key export markets, prepare website pages specific to the territory. Provide product information in the local language, with prices in the local currency. Selling to global customers through a website is suitable for products that do not require demonstration or explanation by a sales representative.

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Direct Sales

You can sell directly to export customers by making sales visits to territories where you have identified demand. This is a simple, cost-effective way to enter global markets, but your potential sales are limited by the time and resources you can allocate to sales visits.

Distributors

Working with distributors provides you with a local presence in your target markets and reduces your own sales and logistics requirements. Distributors buy products from you and resell them to their own customers. They offer you the benefit of established local contacts and market knowledge. Investing in training will give distributors the product and market knowledge they need to increase sales of your product. Although working with distributors provides you with access to established markets, you have minimal control over the way distributors deal with customers or market your product.

Joint Venture

A joint venture with a local business partner also provides the benefits of local market knowledge and contact. Your company sets up a business relationship with a company in the local market. The local partner may also reduce the risk of discrimination against your company. Take legal advice before setting up the joint venture as some countries limit foreign companies to minority participation in the venture, reducing your effective control.

References

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About the Author

Based in the United Kingdom, Ian Linton has been a professional writer since 1990. His articles on marketing, technology and distance running have appeared in magazines such as “Marketing” and “Runner's World.” Linton has also authored more than 20 published books and is a copywriter for global companies. He holds a Bachelor of Arts in history and economics from Bristol University.